A deficiency tag hangs on a diesel generator at the South Texas Project nuclear plant near Bay City, Texas. Between 4,000 and 5,000 hours of inspections are conducted at the plant by inspectors there each year according to Nuclear Regulatory Commission officials. JOHN DAVENPORT/JDAVENPORT@express-news.net

A deficiency tag hangs on a diesel generator at the South Texas Project nuclear plant near Bay City, Texas. Between 4,000 and 5,000 hours of inspections are conducted at the plant by inspectors there each year

John Dixon, Jr. is the Senior Resident Inspector for the Nuclear Regulatory Commission at the South Texas Project nuclear plant Near Bay City, Texas. A Texas A & M graduate, Dixon is from San Antonio, Texas. JOHN DAVENPORT/jdavenport@express-new.net

This unassuming landscape is the approximate location where Units 3 & 4 are planned for construction at the South Texas Project nuclear plant near Bay City Texas. The plant supplies electricity for numerous Texas cities. JOHN DAVENPORT/jdavenport@express-news.net

This unassuming landscape is the approximate location where Units 3 & 4 are planned for construction at the South Texas Project nuclear plant near Bay City Texas. The plant supplies electricity for numerous

John Dixon, Jr., Senior Resident Inspector for the Nuclear Regulatory Commission at the South Texas Nuclear Project, wears two docimeters (along with nametag) to measure the radiation he encounters while making inspections at the nuclear power plant. JOHN DAVENPORT/jdavenport@express-news.net

John Dixon, Jr., Senior Resident Inspector for the Nuclear Regulatory Commission at the South Texas Nuclear Project, wears two docimeters (along with nametag) to measure the radiation he encounters while making

Nuclear Regulatory Commission Senior Resident Inspector John Dixon, Jr. inpsects a huge diesel engine at the South Texas Project Nuclear Plant near Bay City Texas. The massive engines at the plant can produce 5.5 megawatts of power and are in place in case of an emergency shut down of nuclear power at the STP plant. JOHN DAVENPORT/jdavenport@express-news.net

Nuclear Regulatory Commission Senior Resident Inspector John Dixon, Jr. inpsects a huge diesel engine at the South Texas Project Nuclear Plant near Bay City Texas. The massive engines at the plant can produce

A detail in the control room of Unit 1 at the South Texas Project nuclear plant. Units one and two were built about 30 years ago and units three and four are slated for construction in 2012. JOHN DAVENPORT/jdavenport@express-news.net

In the control room of Unit 1 at the South Texas Project, Reactor Operators David Clark (left) and Ed McConaha monitor automated systems of the reactor. Units 1 and 2 were built about 30 years ago. JOHN DAVENPORT/jdavenport@express-news.net

In the control room of Unit 1 at the South Texas Project, Reactor Operators David Clark (left) and Ed McConaha monitor automated systems of the reactor. Units 1 and 2 were built about 30 years ago. JOHN

John Dixon, Jr. is the Senior Resident Inspector with the Nuclear Regulatory Commission (NRC) and inspects the plant almost on a daily basis along with other inspectors. The NRC has a permanent office at the plant and operates in a federal capacity independently of the South Texas Project Nuclear Operating Company. JOHN DAVENPORT/jdavenport@express-news.net

John Dixon, Jr. is the Senior Resident Inspector with the Nuclear Regulatory Commission (NRC) and inspects the plant almost on a daily basis along with other inspectors. The NRC has a permanent office at the

This is the South Texas Project (STP) nuclear plant near Bay City, Texas. Plans to expand the plant are on the drawing board. The plant is on a 12, 200 acre site. JOHN DAVENPORT/jdavenport@express-news.net

This is the South Texas Project (STP) nuclear plant near Bay City, Texas. Plans to expand the plant are on the drawing board. The plant is on a 12, 200 acre site. JOHN DAVENPORT/jdavenport@express-news.net

Photo: JOHN DAVENPORT, SAN ANTONIO EXPRESS-NEWS

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The power plant near Bay City is operated by the South Texas Project Nuclear Operating Co. JOHN DAVENPORT/jdavenport@express-news.net

The power plant near Bay City is operated by the South Texas Project Nuclear Operating Co. JOHN DAVENPORT/jdavenport@express-news.net

Photo: JOHN DAVENPORT, SAN ANTONIO EXPRESS-NEWS

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Water in the 7,000 acre resevior near the two nuclear reactors at the South Texas Project near Bay City roils and bubbles on a hot June day. JOHN DAVENPORT/jdavenport@express-news.net

Water in the 7,000 acre resevior near the two nuclear reactors at the South Texas Project near Bay City roils and bubbles on a hot June day. JOHN DAVENPORT/jdavenport@express-news.net

Photo: JOHN DAVENPORT, SAN ANTONIO EXPRESS-NEWS

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This is the South Texas Project electric generating station near Bay City, Texas. The South Texas Project Nuclear Operating Company is planning on building two more nuclear reactors on the site that will be known as STP three and four. Pre-site construction should begin in late 2010 or early 2011 and full construction should start in 2012 according to plant spokesperson Buddy Eller. JOHN DAVENPORT/jdavenport@express-news.net

This is the South Texas Project electric generating station near Bay City, Texas. The South Texas Project Nuclear Operating Company is planning on building two more nuclear reactors on the site that will be

THEN AND NOW 060803 - FILE - This 1982 photo shows the Unit 2 reactor of the South Texas Project nuclear plant as it appeared under construction. Although Unit 2 remains operating this summer, the Bay City plant, the state's first nuclear facility, has had both costly shutdowns and periods of high productivity. Express-News Files

THEN AND NOW 060803 - FILE - This 1982 photo shows the Unit 2 reactor of the South Texas Project nuclear plant as it appeared under construction. Although Unit 2 remains operating this summer, the Bay City

FOR FOCUS 97 ADVANCE - Power lines dominate the skyline around the nuclear power plant in Bay City.

FOR FOCUS 97 ADVANCE - Power lines dominate the skyline around the nuclear power plant in Bay City.

Photo: DOUG SEHRES

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NRG will no longer invest in STP expansion

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NRG Energy stopped all spending on the South Texas Project nuclear expansion and will write off its investment in the face of deeply diminished prospects for the project since Japan's worst-ever nuclear accident.

“The project is not dead,” CEO David Crane said Tuesday, “but it's not moving forward at this point, and to be frank, under the current circumstances, the reality of it moving forward in the foreseeable future is not high.”

The company plans to record a first-quarter pre-tax charge of about $481 million from Nuclear Innovation North America, its joint venture with Toshiba, NRG said. Toshiba funded $150 million of that.

Toshiba, which holds a 12 percent stake in NINA, will take over the costs of pursuing the NRC license. But Crane acknowledged any roadblocks in that process could cause Toshiba to drop its funding.

CPS Energy, which retains a 7.6 percent stake in the expansion, said it will continue to support efforts to secure the federal loan guarantee and operating license. It stopped its investment, which totaled about $386 million, more than a year ago.

The city-owned utility would receive $80 million from NINA if the project gets the loan guarantee.

Spokeswoman Lisa Lewis said it's too soon to tell whether CPS ultimately will lose its investment in the project. She noted there were times during the development of STP's original two reactors when the project looked dead, only to be revived by new partners and new circumstances.

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NRG recognized last month that it likely lost a major investor in the expansion after Tokyo Electric Power's Fukushima Dai-Ichi nuclear reactors were crippled by a tsunami spawned by an earthquake. NRG then suspended indefinitely all detailed engineering work and other pre-construction activities. That reduced the project workforce from 1,000 to about 350.